Simple Man’s Opinion…What now Fed?

This Simple Man like many other everyday people knew the Fed would not raise rates. If they did, it would be to basically save face. As I’ve said before, the Fed is going to do NOTHING until a bigger calamity happens that they, the Fed and politicians, can then blame a”tied-in” economic crisis or collapse to.

Without some sort of “crisis” what tools are left in the Fed tool bag that they can use? Keep in mind the goal is to get the velocity of money going again and/or monetizing debt. First, they can do QE4. However, to do so would signal without a doubt there will never be an interest rake hike any time soon. Besides, why do QE when it seems Japan is doing it for them, correct? Of course there is more, but I’ll stop at that.

Second, helicopter drop. Basically this is giving the “people” free money so that they will spend it. You see, QE is basically a helicopter drop for banks. This time, it’s possible to expect a helicopter drop of cash for the people. Imagine people with student loans. The government may come in and “forgive” them in some way so that now young people can spend their money or perhaps buy a home. Or, perhaps the government will try to get money into the hands of the people be it some kind of “special” loan or a “rebate” or some “incentive scheme. ” Perhaps the government will even create infrastructure jobs to get people to work and get money in their hands to spend it. Notice the word is spend, not save.

End result, the government does not want you to save, they want you to spend or take on debt. When you spend, the economic wheels start moving. And thats what governments want you to do; spend money and take on loans or credit to get money to spend. Either way, getting money to U.S. citizens is another tool in the Fed tool bag. If they plan to do this, my bet is it will be around election time where the Democrats will somehow get money into the hands of the people in favour for votes. If this is to happen, mark it on your calendar to happen before or around November 2016.

Third, negative interest rates. Yes yes, totally opposite of what the Fed wants. However, if you are saving your money and not spending it, then the Fed will offer you a great and sinister deal. They will offer you negative interest rates where you will spend money to save it. What did you just say Simple Man?

In other words, the Fed will give you a choice. You can either take out and spend money from your savings, or, keep it in the bank and your bank will charge you more to keep it there. The objective is again, they don’t want you to save, they want you to spend.

Looking at these 3 basic scenarios and yes surely there are more, the Fed is not your friend, and neither is your government and the politicians you voted in.

This is in part why my bet is the Fed seemingly would rather do nothing, and wait for an excuse such as “climate change” to cause an economic downturn. The Fed is waiting for the right “data” or so they say. Perhaps the Fed is waiting and will do nothing since it seems the U.S. is bent on creating a war somewhere. This way the Fed and politicians have a perfect excuse for the economic mess they created. They can hide in the fog of war and vanish from any blame or responsibility.

The point is, you and I must balance the world we live in with the world that is fast approaching. And it seems the world approaching us is perhaps one that none of us may like. If history tells us anything, it’s that nothing stays the same. The world will indeed change. Are you prepared for change?

I don’t believe the world will end, this is not the change I’m speaking of. However, I do believe this current economic and financial system will end sooner than later. For those reasons, it’s a good idea to get yourself silver and gold. Silver and gold are historically money anywhere in the world. Therefore, whatever this current economic or financial system is replaced with, my bet is a person holding gold or silver is holding something much more valuable than a piece of paper currency.

Don’t believe me? Think about this, if you had access to a 500 year old sunken treasure of gold, silver, and paper currency that is no longer recognised, which would you choose? What is worth more? This is the point, all of us, me included, are holding paper currency that one day will not be recognised as having value. Yet, we know that the everyone everywhere and anywhere will recognise gold and silver as having value. This is where we need to be in balance with what will have value today and what will have value tomorrow.

This is the choice we all must begin making today because history tells us that tomorrow, or one day in the future, a paper currency will not be recognised to hold any value anymore. However, gold and silver always has had value, and always will.